PM 08-01-02-c: 3/4 Earned Income Deduction

At intake and on SWAPS from Medical to Cash, if the family is eligible after the first test, determine eligibility and benefit amount by applying the 3/4 earned income deduction to the client's gross earned income.

For active cases, determine eligibility and benefit amount using the 3/4 earned income deduction.

To decide eligibility and benefit amount, deduct 3/4 of the gross earned income from the total gross earned income. Allow this deduction for each employed person. There is no time limit for allowing the 3/4 earned income deduction. Allow the deduction for as long as the client is working.

Do not allow the 3/4 earned income deduction for any month that the person:

Quit a job or reduced their earnings without good cause within the 30-day period before the month the deduction would be used.

Refused without good cause, within the 30-day period before the month the deduction would be used:

to accept an offer of employment through Job Service that the person was physically able to do, or

a job offered by an employer if the employer notifies DHS of the offer and it is determined that the offer is bona fide.

Failed without good cause to report the income in a timely manner (see PM 08-01-03).